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Unclaimed Funds

Unclaimed funds are funds held by the court for an owner who is entitled to the money, but has failed to claim ownership of it. Most unclaimed funds arise in bankruptcy cases when the checks mailed by the trustee to the creditors are not cashed. Under the Bankruptcy Code, the trustee must stop payment on any check that remains unpaid 90 days after final distribution in the case. The unclaimed funds are turned over to the court to hold for the benefit of the creditor.

The U.S. Courts, as custodians of the funds, have established policies and procedures for holding, safeguarding, and accounting for the funds.